Stein Mart (SMRT) Receives Nasdaq Listing Compliance Letter for Late Filing

March 7, 2013 6:58 AM EST
Stein Mart, Inc. (Nasdaq: SMRT) today announced that on March 6, 2013 it received the anticipated letter (the "Staff Determination Letter") from the Staff of The NASDAQ Stock Market LLC notifying the Company that it has not regained compliance with NASDAQ Listing Rule 5250(c)(1) (the "Rule"), the continued listing requirement to timely file all required periodic reports with the Securities and Exchange Commission (the "SEC"), and therefore, that its common stock would be subject to delisting unless the Company timely requests a hearing before a NASDAQ Listing Qualifications Panel (the "Panel").

The Company plans to timely request a hearing before the Panel. At the hearing, the Company will present its plan for regaining compliance with the Rule, and request continued listing pending its return to compliance. The hearing request will result in an automatic stay of delisting until at least March 28, 2013. Concurrent with the hearing request, the Company will ask the Panel to extend the stay until the conclusion of the hearing process. The Panel has the discretion to grant the Company an extension of time within which to regain compliance with the Rule for a period not to exceed 360 days from the original due date, or September 1, 2013. Notwithstanding, there can be no assurance that the Panel will grant the Company's request for continued listing.

As reported on September 13, 2012 and December 11, 2012, the Company is not in compliance with the Rule because it did not timely file its Quarterly Report on Form 10-Q for the second quarter ended July 28, 2012 or the third quarter ended October 27, 2012 (the "Delinquent Filings"). As also previously announced on November 15, 2012, NASDAQ granted the Company an exception until March 5, 2013 to file the Delinquent Filings and regain compliance with the Rule.

The Company has been unable to file its Delinquent Filings by March 5, 2013 because it is still in the process of restating previously issued financial statements due to the need to test and audit prior results, as well as evaluate control implications related to the restatement. See below for an update on the restatement process.

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